| Many companies are willing to go much farther than Microsoft, allowing their source code to be used for more than just examination and interfacing. Licensees can make copies, create derivative works, and distribute their works. They draw the line, though, at commercial uses of the resulting software. They argue that the free use of open source software for commercial purposes exacerbates the free- rider problem I described in Chapter 10. It reduces the incentives for contributors because profits from the software will go to large companies rather than to contributors. While not always prohibiting commercial uses, as the Microsoft Shared Source license does, public source licenses typically require the payment of royalties for commercial uses. This form of license is referred to as public source , to indicate that the source code is published but that the software is not distributed under an open source license. There can be many varieties of public source licenses, depending on the characteristics of the software being distributed and the business model of the licensor . For example, Ping Identity Corporation (see www.pingid.com ) distributes some of its software under the following terms: a. Without payment of royalty for unlimited Personal Use or Non-Commercial Distribution (as those terms are defined below); b. Without payment of royalty for other than Personal Use and Non-Commercial Distribution as long as Licensed Software will run on fewer than 100 processors (as that term is defined below); and c. Subject to the payment of one-time paid-up Royalty Fees for other than Personal Use and Non-Commercial Distribution on 100 or more processors. Licenses to run the Software on additional processors are subject to the Royalty Fees and payment terms as obtained at http://www.pingidentity.com and in effect on the date such additional licenses are obtained from Licensor. Royalty Fees to run the Software on additional processors are due and payable to Licensor prior to first use on those processors. (SourceID Public Source License section 1.) Unlike the CPL license, which leaves the term commercial distribution undefined, the SourceID Public Source License defines its terms precisely: As used in this License, the term "Personal Use" means the functional use of software by an individual solely for his or her personal, private and non-commercial purposes. An individual's use of software in his or her capacity as an officer, employee, member, independent contractor or agent of a corporation, business or organization (commercial or non-commercial) does not qualify as Personal Use. (SourceID Public Source License section 3.) As used in this License, the term "Non-Commercial Distribution" means the distribution of software to any third party for which no payment is made in connection with such distribution, whether directly (including, without limitation, payment for a copy of the software) or indirectly (including, without limitation, payment for a service related to the software, or payment for a product or service that includes a copy of the software "without charge"). (SourceID Public Source License section 3.) As used in section 1 of this License, the term "processors" refers to a single processor running a single instance of Licensed Software. Each additional processor or instance of Licensed Software counts as an additional processor. (SourceID Public Source License section 3.) These distinctions among users are not permitted in open source licenses under Open Source Principle #1. Nor can there be conditions like these that require open source licensees to count processors or similar metrics of software use. Public source licenses like this one do not guarantee software freedom ”they are not open source. | 